Jaguar Land Rover (JLR) dealerships in Canada are reportedly preparing joint legal action in response to the company’s move to an electric-only product line for the Jaguar brand.
This change in strategy will see the brand repositioned as a more exclusive brand with a higher price point and smaller product line.
The shift to the luxury market could mean lower transaction volumes and fewer dealers, something Carscoops The reports drew the ire of JLR’s Canadian dealer network, which initiated a joint lawsuit against the company.
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Jaguar F-Pace SVR
Jaguar is said to have planned to reduce its sales target from 8,000 units per year to just 700 units, which would entail a shift to an online retail model.
Dealers have tried to resolve that issue with JLR Canada, although they are said to be prepared to take legal action if a resolution is not reached in the coming weeks.
The number of JLR dealerships has increased since 2013, when the company announced global expansion plans and a target of selling one million cars globally. That plan has attracted Canadian dealers, with annual sales targets of 12,000 for Land Rover and 8,000 for Jaguar located in the country.
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Jaguar I-Pace
Dealers have invested in expansions to allow both brands to be sold under the same roof, with an estimated US$20 million (A$30.3 million) typically spent on upgrades .
Dealers sold 4,620 Jaguars in 2017, but that number dropped to 1,118 in 2023.
Canadian dealers are said to be unsure whether the brand can meet the updated target of 700 units.
Jaguar’s first electric car in what is expected to be a transition to the luxury market revealed this year ahead of its market launch in 2025, even though it costs up to US$125,000 (A$190,000).
Due to the lower proposed numbers, US dealers were given the opportunity to remove their share of the Jaguar franchise in return for an additional allocation of Land Rovers.
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The ultimate Jaguar F-Type
Carscoops reports a similar strategy being adopted in Canada, including the ability to maintain service and sell certified pre-owned Jaguars.
That offer was not accepted positively by the Canadian dealers, likely due to the significant investments they have made in their dealers over the past 10 years.
JLR CEO at that time was Thierry Bollore announced in February 2021 that Jaguar will become a more exclusive, electric-only brand by 2025 and decided to abandon what was supposed to be the first electric XJ.
The entire Jaguar product line is in the process of being phased out, with the brand targeting not only the German-dominated luxury segment but also ultra-luxury brands like Bentley.
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